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OpenAI launched ChatGPT in November 2022, but in the meantime, the cryptocurrency and blockchain industry has been strangled by scandals, defaults, hacks, and plummeting prices, putting the industry in crisis to say the least. I was on the verge of death. This era can be imagined as a high-tech version of a “tale of two cities,” with one industry in turmoil and another in a period of unprecedented prosperity.
As we all know, ChatGPT represents rapid advances in generative AI and natural language processing, shocking the world with its ability to quickly output data and assist users with a wide range of tasks. His ChatGPT, which amassed a record 57 million active users in its first month, disrupted the entire industry and sparked a Big Tech AI arms race.
As intrigue and hype surrounding AI developments reach new heights, blockchain and cryptocurrencies have been caught up in a weakening bear market and overshadowed by other hot new technologies.
Bitcoin has surpassed $70,000, hitting a new all-time high. At the same time, most of all other cryptocurrencies are on the rise. Confidence that a bull market is imminent has never been higher. As the industry gears up for another bull market, many outside parties are wondering whether the industry has matured enough to become more mainstream, or whether projects will learn lessons from the last market downturn. I’m wondering if I could have done that.
Related: Infographic: Bitcoin soars as M-Cap tops $1 trillion
Enhanced supporting role of DeFi
Developments over the past year have shown a revamped cryptocurrency and blockchain space focused on real products, services, and infrastructure, rather than hype-filled, fanciful projects that offer little value. I am.
Decentralized finance (DeFi), which leverages blockchain technology to provide financial services without intermediaries, demonstrated this new maturity and has since become the modest backbone of the industry’s recovery.
DeFi’s evolution from a niche area of lending and borrowing or simply addressing Ethereum’s operational issues is reflected in improved solutions, increased scalability, expanded interoperability, and increased sustainability. With more mature exchanges, sustainable liquidity mining and yield options, and more robust smart contract auditing and regulatory compliance, retail investors and institutions are increasingly intrigued by DeFi capabilities.
As DeFi builds a more stable and sustainable foundation for the industry, these advances are fueled by a focus on infrastructure projects like Kima, which provides tools and interfaces to link DeFi with traditional bank accounts and credit cards. We support Privacy and security features like Chainlink’s decentralized network of nodes minimize smart contract vulnerabilities by validating on-chain data, enable smooth cross-chain communication, and work with SWIFT.
Larger educational institutions are also evaluating these improvements, as demonstrated in a recent pilot program by the Canton Network. In it, dozens of institutions, including Goldman Sachs, BNY Mellon, and Cboe, simulated numerous transactions across 22 blockchains.
Related article: Bitcoin will soon be halved — will it spark a new bull market?
Around cryptocurrency
Apart from increased reliability, advances in DeFi infrastructure have increased liquidity, made it easier to access to a wider range of users, and allowed funds to be spread across the Web3 space. This goodwill has revitalized some of the industries that emerged and flourished during previous bull markets, including blockchain gaming, NFTs (non-fungible tokens), and meme coins, as cryptocurrencies crashed. It became the poster child for what was sometimes problematic.
Although blockchain gaming has been around for a short period of time, it has gained a lot of attention. However, word quickly spread that these were not actually games, but time-consuming and complicated methods of staking tokens and NFTs, leading to widespread criticism from gamers as well as those within the industry. I did.
Now, we are witnessing a change in blockchain gaming, where the game itself is now in charge, rather than the in-game economy. This has even led to the emergence of new types of games, including first-person shooters like “Exverse.” Its breathtaking visuals and story-driven gameplay make it very different from “point-and-click” trading card games like “Axie Infinity” and “CryptoKitties.” . ”
Related: Are NFTs back? Why NFTs will make a comeback in 2024
Just as blockchain gaming is evolving, so are NFTs, with an emphasis on quality gameplay over cryptographic elements. We are witnessing a shift from overhyped, celebrity-backed “members clubs” to more accessible, utility-driven NFTs. New trends in this space include using enhanced generative AI technology to design unique collections, leading brands like Starbucks designing NFT-based loyalty programs, and increasing authenticity in luxury goods. These include the use of NFTs for verification and other innovative real-world applications.
NFTs are often misunderstood outside of the broader Web3 world, but non-crypto enthusiasts are aware of them. But memecoins are a little more unusual, and even some in the crypto industry didn’t understand their purpose or appeal.
Although highly speculative, meme coins have been trending upward recently. The boom-bust asset’s newfound success is partly due to the rise of Bitcoin, but a lot of it is also thanks to the dedicated community it’s built over the years, even if it started as a joke. The success of meme coins depends on marketing and finding the right story at the perfect time.
For example, a Joe Biden-themed meme coin soared 830 percent in early March as the incumbent US president entered the election race. Similarly, Dogelon Mars, inspired by meme coin enthusiast Elon Musk, has built a large and loyal community while forging partnerships and developing new financial products. The unlikely resurgence of this meme coin highlights how cryptocurrencies’ inherent communality and connection to internet culture can fuel real-world community building.
Indeed, when Bitcoin goes up in flames, it can feel like the entire cryptocurrency ecosystem gets caught up in it. While this is certainly true, the industry has also helped propel Bitcoin higher during past bull markets. It’s not necessarily a one-way street. Now, the industry is in another bull market, weathering the coldest crypto winter ever and poised to continue expanding.
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